Total Revenue Of $166.5 Million,
Electricity Revenue Up 5.4%; Reaffirms 2018 Full Year
Guidance
Ormat Technologies, Inc. (the “Company”, “we”, “Ormat” or “us”)
(NYSE: ORA) today announced financial results for the third quarter
ended September 30, 2018.
“Total revenues increased nearly 6% and
electricity revenues increased more than 5%,” commented Isaac
Angel, Chief Executive Officer. “This steady growth was achieved
despite the recent shutdown of our operations at Puna and
highlights the diversification we have built into the Ormat
operating model and the strength of our overall portfolio of
projects around the world. Now that the lava flow near Puna
has ceased, we are working to bring that plant back online, and are
confident that Ormat is well positioned for continued growth.”
($ millions, except per
share amounts) |
Q3
2018 |
Q3 2017 |
Change (%) |
Revenues |
|
|
|
Electricity |
116.9 |
|
110.9 |
|
5.4 |
% |
Product |
48.4 |
|
44.9 |
|
7.9 |
% |
Other |
1.1 |
|
1.4 |
|
(17.7 |
%) |
Total Revenues |
166.5 |
|
157.2 |
|
5.9 |
% |
Gross margin (%) |
|
|
|
Electricity |
31.7 |
% |
41.9 |
% |
|
Product |
26.4 |
% |
28.3 |
% |
|
Other |
(89.0 |
%) |
4.8 |
% |
|
Total Gross Margin (%) |
29.3 |
% |
37.7 |
% |
|
Operating income |
25.9 |
|
44.0 |
|
(41.1 |
%) |
Net Income |
10.1 |
|
27.6 |
|
(63.3 |
%) |
Net income attributable to the Company’s
stockholders |
10.6 |
|
24.0 |
|
(55.8 |
%) |
Diluted EPS |
0.21 |
|
0.47 |
|
|
Adjusted Net income attributable to the
Company’s stockholders 1 |
15.6 |
|
25.9 |
|
(39.9 |
%) |
Diluted
Adjusted EPS1 |
|
0.31 |
|
|
0.51 |
|
|
|
Adjusted
EBITDA1 |
|
75.6 |
|
|
76.4 |
|
(1.1 |
%) |
|
|
|
|
|
|
|
|
|
_________
1 Reconciliations of Adjusted Net income
attributable to the Company’s stockholder, Diluted Adjusted EPS and
Adjusted EBITDA is set forth below in this release
“The Puna shutdown, coupled with a larger than
average number of production pump replacements required in this
quarter, impacted our overall margins,” added Mr. Angel.
“Nevertheless, Ormat delivered $75.6 million in Adjusted EBITDA.
Our solid, continued profitability despite significant unforeseen
events like the Kīlauea volcano eruption, further demonstrates the
strength and resilience of our business model. We have made
significant efforts to expedite the commencement of the 48MW
McGinness Hills 3 power plant now planned for early December 2018.
The contribution of McGinness Hills 3, as well as high generation
and margins expected in the fourth quarter, should result in strong
financial performance of the Electricity segment that will support
our full year 2018 guidance.”
FINANCIAL HIGHLIGHTS
- Total revenues of $166.5 million in the quarter, up 5.9%
compared to the third quarter of 2017;
- Electricity segment revenues of $116.9 million in the quarter,
up 5.4% compared to the third quarter of 2017;
- Electricity generation in the quarter increased 7.1%, compared
to the third quarter of 2017, from 1.24 million MWh to 1.32 million
MWh;
- Electricity segment gross margin in the quarter was 31.7%
compared to 41.9% in the year ago quarter. The decrease is mainly
due to the impact of the shutdown in the Puna power plant in
Hawaii, higher maintenance expenses mainly due to above average
production pump failures in some of our power plants, a decrease in
generation related to higher than average ambient temperature and
grid operator curtailments;
- Excluding the Puna shutdown, the electricity segment gross
margin in the third quarter of 2018 was 35.3% and the nine-month
margin, excluding the Puna impact, was 39.3%;
- Product segment revenues in the quarter of $48.4 million, up
7.9% compared to the third quarter of 2017;
- Product segment backlog amounts to $226.4 million as of
November 1, 2018;
- Total gross margin in the quarter was 29.3% compared to 37.7%
in the third quarter of 2017;
- Net income in the quarter was $10.1 million compared to Net
income of $27.6 million in the third quarter of 2017;
- Net income attributable to the Company's stockholders in the
quarter was $10.6 million, or $0.21 per diluted share, compared to
$24.0 million, or $0.47 per diluted share, in the third quarter of
2017; excluding the termination fee of $5 million or $0.10 per
diluted share related to the Galena 2 PPA, Adjusted Net income
attributable to the Company's stockholders, was $15.6 million, or
$0.31 per diluted share, compared to $25.9 million, or $0.51 per
diluted share, in the third quarter of 20172 ;
- Adjusted EBITDA in the quarter was $75.6 million,
excluding the $5 million termination fee, compared to $76.4 million
in the third quarter of 2017; and
- Declared a quarterly dividend of $0.10 per share for the third
quarter of 2018.
RECENT DEVELOPMENTS
- Ormat completed the closing of the first tranche under the
previously announced finance agreement totaling up to $124.7
million for the 35 MW Platanares geothermal power plant in
Honduras, with the Overseas Private Investment Corporation
(“OPIC”), United States government’s development finance
institution, as the sole lender. Following the closing, Ormat
received a disbursement of $114.7 million representing the full
amount of Tranche I of the OPIC non-recourse project finance loan
that carries a fixed interest rate of 7.02% per annum with a
maturity of approximately 14 years. The closing of the second
tranche of up to $10 million is expected during the first half of
2019.
- In Puna, Hawaii, before the lava recently stopped flowing, the
lava covered the wellheads of three geothermal wells, the
substation of the Puna complex and an adjacent warehouse that
stored a drilling rig. The Company is currently assessing the
damages to the Puna facilities and continues to coordinate with
Hawaii Electric Light Company and local authorities to bring the
power plant back to operation. The Company is in the process of
building access roads to the site, removing the plugs from the
production wells and rebuilding the electrical substation.
Management is in ongoing discussions with its insurance companies,
working to secure a business interruption claim for the income loss
from the shutdown.
- Ormat opted out of the Galena 2 PPA with NV Energy Inc., and
reported a one-time $5 million termination fee, recorded in selling
and marketing expenses, in the third quarter of 2018. In March
2019, Ormat will start selling power from Galena 2 under its
existing Southern California Public Power Authority portfolio PPA
at $75.5 per MWh replacing lower pricing under the Galena 2
PPA.
__________________
2 Reconciliation is set forth below in this release
GUIDANCE
Mr. Angel added, “We are reaffirming our
full-year 2018 guidance for the Electricity segment revenues to be
between $500 million and $510 million. We expect Product segment
revenues to be between $190 million and $200 million and revenues
from energy storage and demand response activity to be between $8
million and $12 million. As such, our guidance for total revenues
is between $698 million and $722 million. Our 2018 Adjusted EBITDA
guidance is expected to be between $370 million and $380 million
for the full year, assuming successful resolution of our insurance
claim for our losses relating to Puna situation by the end of
2018.
In the event we do not reach a resolution of our
insurance claim by the end of 2018, the 2018 Adjusted EBITDA might
be negatively impacted by approximately $20 million.
We expect annual Adjusted EBITDA attributable to
minority interest to be approximately $30 million. The minority
interest includes our partners share in the insurance claim for the
Puna Plant.”
The Company provides a reconciliation of
Adjusted EBITDA, a non-GAAP financial measure for the three and
nine months ended September 30, 2018. However, the Company is
unable to provide a reconciliation for its Adjusted EBITDA guidance
range due to high variability and complexity with respect to
estimating forward looking amounts for impairments and disposition
and acquisition of business interests, income taxes including the
tax impact of the repatriation of proceeds from sales in foreign
jurisdictions and tax benefit or expense related to effects of the
recently-enacted tax law reform in the United States and other
non-cash expenses and adjusting items which are excluded from the
calculation of Adjusted EBITDA.
THIRD QUARTER 2018 FINANCIAL RESULTS
For the three months ended September 30, 2018,
total revenues were $166.5 million, up 5.9% compared to the quarter
ended September 30, 2017.
Electricity segment revenues increased 5.4% to
$116.9 million for the three months ended September 30, 2018, up
from $110.9 million for the three months ended September 30, 2017.
The increase was mainly attributable to the Platanares, Tungsten
Mountain and Olkaria III expansion projects, which came online in
the last twelve months, as well as the U.S. Geothermal acquisition,
offset by the shutdown of the Puna plant as well as lower
generation in other power plants due to maintenance issues and
enhancements, high ambient temperature and grid operator
curtailments.
Product segment revenues increased 7.9% to $48.4
million for the three months ended September 30, 2018, up from
$44.9 million for the three months ended September 30, 2017. Other
segment revenues were $1.1 million in the third quarter of 2018
compared to $1.4 million in the third quarter of 2017.
During the third quarter, Ormat recorded under
selling and marketing expenses a non-recurring $5 million charge
for a termination fee paid to NV Energy related to the termination
of the Galena 2 PPA. Ormat intends to sell power from Galena 2
under its SCAPPA Portfolio PPA at $75.5 per MWh starting March
2019.
General and administrative expenses for the
three months ended September 30, 2018 were $13.6 million, or 8.2%
of total revenues, compared to $10.9 million, or 6.9% of total
revenues, for the three months ended September 30, 2017. The
increase was primarily attributable to stock-based compensation
costs associated with grants made to the CEO, senior management and
employees as well as higher legal and auditing costs associated
with the remediation plan for the previously reported material
weakness.
Net income for the three months ended September
30, 2018 was $10.1 million compared to Net income of $27.6 million
for the three months ended September 30, 2017.
Ormat reported Net income attributable to the
Company’s stockholders Inclusive of the $5 million non-recurring
termination fee, of $10.6 million, or $0.21 per diluted share,
compared to $24.0 million, or $0.47 per diluted share, for the same
period a year ago.
Adjusted net income attributable to the
Company's stockholders of $15.6 million, or $0.31 per diluted
share. Adjusted Net income attributable to the Company's
stockholders and diluted EPS for the third quarter of 2017 of $25.9
million or, $0.51 per diluted share excludes $1.9 million or $0.04
per diluted share, attributable to a one-time make whole premium
paid in connection with the prepayment of OFC senior secured notes
and DEG loan.
Adjusted EBITDA for the three months ended
September 30, 2018 was $75.6 million, compared to $76.4 million for
the three months ended September 30, 2017. The decrease in Adjusted
EBITDA is mainly related to the shutdown in Puna offset by the
contribution of Sarulla to the EBITDA. The reconciliation of GAAP
net income to EBITDA and Adjusted EBITDA is set forth below in this
release.
DIVIDEND
November 6, 2018, the Company’s Board of Directors declared,
approved and authorized payment of a quarterly dividend of $0.10
per share pursuant to the Company’s dividend policy. The dividend
will be paid on December 4, 2018 to stockholders of record as of
the close of business on November 20, 2018.
CONFERENCE CALL DETAILS
Ormat will host a conference call to discuss its
financial results and other matters discussed in this press release
on Tuesday, November 6, at 9 a.m. ET. The call will be available as
a live, listen-only webcast at investor.ormat.com. During the
webcast, management will refer to slides that will be posted on the
website. The slides and accompanying webcast can be accessed
through the News & Events in the Investor Relations section of
Ormat’s website.
An archive of the webcast will be available
approximately 30 minutes after the conclusion of the live call.
Please ask to be joined into the Ormat
Technologies, Inc. call.
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Participant telephone
numbers |
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Participant dial in
(toll free): |
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1-877-511-6790 |
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Participant
international dial in: |
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1-412-902-4141 |
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Canada Toll Free: |
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1-855-669-9657
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Conference replay |
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US Toll Free:
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1-877-344-7529 |
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International
Toll: |
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1-412-317-0088 |
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Replay Access
Code: |
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10122171 |
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ABOUT ORMAT TECHNOLOGIES
With over five decades of experience, Ormat
Technologies, Inc. is a leading geothermal company and the only
vertically integrated company engaged in geothermal and recovered
energy generation (“REG”), with the objective of becoming a leading
global provider of renewable energy. The Company owns, operates,
designs, manufactures and sells geothermal and REG power plants
primarily based on the Ormat Energy Converter – a power generation
unit that converts low-, medium- and high-temperature heat into
electricity. With 77 U.S. patents, Ormat’s power solutions have
been refined and perfected under the most grueling environmental
conditions. Ormat has 530 employees in the United States and 770
overseas. Ormat’s flexible, modular solutions for geothermal power
and REG are ideal for vast range of resource characteristics. The
Company has engineered, manufactured and constructed power plants,
which it currently owns or has installed to utilities and
developers worldwide, totaling over 2,600 MW of gross capacity.
Ormat’s current 862 MW generating portfolio is spread globally in
the U.S., Kenya, Guatemala, Indonesia, Honduras, and Guadeloupe.
Ormat expanded its operations to provide energy storage and energy
management solutions, by leveraging its core capabilities and
global presence as well as through its Viridity Energy Solutions
Inc. subsidiary, a Philadelphia-based company with nearly a decade
of expertise and leadership in energy storage, demand response and
energy management.
ORMAT’S SAFE HARBOR STATEMENT
Information provided in this press release may
contain statements relating to current expectations, estimates,
forecasts and projections about future events that are
"forward-looking statements" as defined in the Private Securities
Litigation Reform Act of 1995. These forward-looking statements
generally relate to Ormat's plans, objectives and expectations for
future operations and are based upon its management's current
estimates and projections of future results or trends. Actual
future results may differ materially from those projected as a
result of certain risks and uncertainties.
For a discussion of such risks and
uncertainties, see "Risk Factors" as described in Ormat’s Form
10-K/A filed with the Securities and Exchange Commission (“SEC”) on
June 19, 2018 and from time to time, in Ormat’s quarterly reports
on Form 10-Q that are filed with the SEC.
These forward-looking statements are made only
as of the date hereof, and we undertake no obligation to update or
revise the forward-looking statements, whether as a result of new
information, future events or otherwise.
Ormat Technologies, Inc. and Subsidiaries
Ormat Technologies, Inc. and
SubsidiariesCondensed Consolidated Statement of OperationsFor the
Three and Nine Months Periods Ended September 30, 2018 and
2017(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30 |
|
Nine Months Ended September 30 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except per share data) |
|
(In thousands, except per share data) |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Electricity |
$ |
116,891 |
|
$ |
110,876 |
|
$ |
371,559 |
|
$ |
337,548 |
|
Product |
|
48,439 |
|
|
44,912 |
|
|
152,026 |
|
|
186,621 |
|
Other |
|
1,150 |
|
|
1,397 |
|
|
5,217 |
|
|
2,278 |
|
Total revenues |
|
166,480 |
|
|
157,185 |
|
|
528,802 |
|
|
526,447 |
|
Cost of
revenues: |
|
|
|
|
|
|
|
|
Electricity |
|
79,845 |
|
|
64,444 |
|
|
234,563 |
|
|
193,676 |
|
Product |
|
35,669 |
|
|
32,218 |
|
|
106,968 |
|
|
125,102 |
|
Other. |
|
2,174 |
|
|
1,330 |
|
|
7,645 |
|
|
3,573 |
|
Total cost of revenues |
|
117,688 |
|
|
97,992 |
|
|
349,176 |
|
|
322,351 |
|
Gross profit |
|
48,792 |
|
|
59,193 |
|
|
179,626 |
|
|
204,096 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Research and
development expenses |
|
706 |
|
|
716 |
|
|
3,065 |
|
|
2,368 |
|
Selling and
marketing expenses |
|
8,578 |
|
|
3,630 |
|
|
15,989 |
|
|
12,083 |
|
General and
administrative expenses |
|
13,606 |
|
|
10,877 |
|
|
43,325 |
|
|
33,027 |
|
Impairment
charge |
|
|
|
|
|
— |
|
|
— |
|
Write-off of
unsuccessful exploration activities |
|
— |
|
|
— |
|
|
119 |
|
|
— |
|
Operating income |
|
25,902 |
|
|
43,970 |
|
|
117,128 |
|
|
156,618 |
|
Other income
(expense): |
|
|
|
|
|
|
|
|
Interest
income |
|
214 |
|
|
255 |
|
|
516 |
|
|
861 |
|
Interest
expense, net |
|
(18,700 |
) |
|
(11,692 |
) |
|
(48,890 |
) |
|
(41,155 |
) |
Derivatives and
foreign currency transaction gains (losses) |
|
(383 |
) |
|
(1,001 |
) |
|
(2,511 |
) |
|
2,040 |
|
Income
attributable to sale of tax benefits |
|
4,066 |
|
|
3,506 |
|
|
14,983 |
|
|
14,019 |
|
Other
non-operating expense, net |
|
309 |
|
|
(1,592 |
) |
|
7,662 |
|
|
(1,678 |
) |
Income before income taxes and equity in |
|
|
|
losses of investees |
|
11,408 |
|
|
33,446 |
|
|
88,888 |
|
|
130,705 |
|
Income tax (provision)
benefit |
|
(1,184 |
) |
|
(6,224 |
) |
|
(3,347 |
) |
|
(49,993 |
) |
Equity in losses
of investees, net |
|
(117 |
) |
|
337 |
|
|
1,481 |
|
|
(1,690 |
) |
Net income |
|
10,107 |
|
|
27,559 |
|
|
87,022 |
|
|
79,022 |
|
Net income attributable to noncontrolling interest |
|
474 |
|
|
(3,599 |
) |
|
(7,276 |
) |
|
(11,228 |
) |
Net income attributable to the Company's stockholders |
$ |
10,581 |
|
$ |
23,960 |
|
$ |
79,746 |
|
$ |
67,794 |
|
|
|
|
|
|
|
|
|
|
Earnings per
share attributable to the Company's stockholders - Basic and
diluted: |
|
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
Net Income |
$ |
0.21 |
|
$ |
0.48 |
|
$ |
1.58 |
|
$ |
1.36 |
|
|
|
|
|
|
|
|
|
|
Diluted: |
|
|
|
|
|
|
|
|
Net Income |
$ |
0.21 |
|
$ |
0.47 |
|
$ |
1.56 |
|
$ |
1.34 |
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares used in computation of
earnings per share attributable to the Company's
stockholders: |
|
|
|
|
|
Basic |
|
50,645 |
|
|
50,367 |
|
|
50,627 |
|
|
49,942 |
|
Diluted |
|
50,963 |
|
|
50,867 |
|
|
50,985 |
|
|
50,669 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ormat Technologies, Inc. and Subsidiaries
Ormat Technologies, Inc. and
SubsidiariesCondensed Consolidated Balance SheetFor the Periods
Ended September 30, 2018 and December 31, 2017(Unaudited)
|
|
September 30, |
|
December 31, |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
(In
thousands) |
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
71,965 |
|
|
$ |
47,818 |
|
Restricted cash, cash equivalents and marketable securities |
|
|
83,101 |
|
|
|
48,825 |
|
Receivables: |
|
|
|
|
|
|
Trade |
|
|
118,675 |
|
|
|
110,410 |
|
Other |
|
|
18,328 |
|
|
|
13,828 |
|
Inventories |
|
|
37,442 |
|
|
|
19,551 |
|
Costs and estimated
earnings in excess of billings on uncompleted contracts |
|
|
47,811 |
|
|
|
40,945 |
|
Prepaid expenses and
other |
|
|
44,452 |
|
|
|
40,269 |
|
Total current
assets |
|
|
421,774 |
|
|
|
321,646 |
|
Investment in an
unconsolidated company |
|
|
67,739 |
|
|
|
34,084 |
|
Deposits and other |
|
|
20,109 |
|
|
|
21,599 |
|
Deferred income
taxes |
|
|
113,363 |
|
|
|
57,337 |
|
Deferred charges |
|
|
— |
|
|
|
49,834 |
|
Property, plant and
equipment, net |
|
|
1,835,939 |
|
|
|
1,734,691 |
|
Construction-in-process |
|
|
351,288 |
|
|
|
293,542 |
|
Deferred financing and
lease costs, net |
|
|
5,878 |
|
|
|
4,674 |
|
Intangible assets,
net |
|
|
203,382 |
|
|
|
85,420 |
|
Goodwill |
|
|
40,111 |
|
|
|
21,037 |
|
Total
assets |
|
$ |
3,059,583 |
|
|
$ |
2,623,864 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts
payable and accrued expenses |
|
$ |
105,351 |
|
|
$ |
153,796 |
|
Short-term revolving credit lines with banks (full recourse) |
|
|
209,500 |
|
|
|
51,500 |
|
Billings
in excess of costs and estimated earnings on uncompleted
contracts |
|
|
21,760 |
|
|
|
20,241 |
|
Current
portion of long-term debt: |
|
|
|
|
|
|
Limited
and non-recourse: |
|
|
|
|
|
|
Senior
secured notes |
|
|
33,259 |
|
|
|
33,226 |
|
Other
loans |
|
|
21,495 |
|
|
|
21,495 |
|
Full recourse |
|
|
5,000 |
|
|
|
3,087 |
|
Total
current liabilities |
|
|
396,365 |
|
|
|
283,345 |
|
Long-term debt, net of
current portion: |
|
|
|
|
|
|
Limited
and non-recourse: |
|
|
|
|
|
|
Senior
secured notes |
|
|
386,379 |
|
|
|
311,668 |
|
Other
loans |
|
|
225,782 |
|
|
|
242,385 |
|
Full recourse: |
|
|
|
|
|
|
Senior
unsecured bonds |
|
|
303,528 |
|
|
|
203,752 |
|
Other
loans |
|
|
43,942 |
|
|
|
46,489 |
|
Liability associated
with sale of tax benefits |
|
|
69,071 |
|
|
|
44,634 |
|
Deferred lease
income |
|
|
49,203 |
|
|
|
51,520 |
|
Deferred income
taxes |
|
|
56,753 |
|
|
|
61,961 |
|
Liability for
unrecognized tax benefits |
|
|
10,139 |
|
|
|
8,890 |
|
Liabilities for
severance pay |
|
|
19,903 |
|
|
|
21,141 |
|
Asset retirement
obligation |
|
|
37,946 |
|
|
|
27,110 |
|
Other long-term
liabilities |
|
|
22,354 |
|
|
|
18,853 |
|
Total
liabilities |
|
|
1,621,365 |
|
|
|
1,321,748 |
|
|
|
|
|
|
|
|
Redeemable
non-controlling interest |
|
|
8,522 |
|
|
|
6,416 |
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
The
Company's stockholders' equity: |
|
|
|
|
|
|
Common
stock |
|
|
51 |
|
|
|
51 |
|
Additional paid-in capital |
|
|
896,160 |
|
|
|
888,778 |
|
Retained
earnings (accumulated deficit) |
|
|
410,870 |
|
|
|
327,255 |
|
Accumulated other comprehensive income (loss) |
|
|
(1,386 |
) |
|
|
(4,706 |
) |
|
|
|
1,305,695 |
|
|
|
1,211,378 |
|
Noncontrolling
interest |
|
|
124,001 |
|
|
|
84,322 |
|
Total
equity |
|
|
1,429,696 |
|
|
|
1,295,700 |
|
Total
liabilities and equity |
|
$ |
3,059,583 |
|
|
$ |
2,623,864 |
|
|
|
|
|
|
|
|
|
|
ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIES Reconciliation of
EBITDA and Adjusted EBITDA For the Three and Nine Months Periods
Ended September 30, 2018 and 2017(Unaudited)
We calculate EBITDA as net income before interest, taxes,
depreciation and amortization. We calculate Adjusted EBITDA as net
income before interest, taxes, depreciation and amortization,
adjusted for (i) termination fees, (ii) impairment of long-lived
assets, (iii) write-off of unsuccessful exploration activities,
(iv) any mark-to-market gains or losses from accounting for
derivatives, (v) merger and acquisition transaction costs, (vi)
stock-based compensation, (vii) gain from extinguishment of
liability, and (viii) gain on sale of subsidiary and property,
plant and equipment. EBITDA and Adjusted EBITDA are not a
measurement of financial performance or liquidity under accounting
principles generally accepted in the United States of America and
should not be considered as an alternative to cash flow from
operating activities or as a measure of liquidity or an alternative
to net earnings as indicators of our operating performance or any
other measures of performance derived in accordance with accounting
principles generally accepted in the United States of America.
EBITDA and Adjusted EBITDA are presented because we believe they
are frequently used by securities analysts, investors and other
interested parties in the evaluation of a Company’s ability to
service and/or incur debt. However, other companies in our industry
may calculate EBITDA and Adjusted EBITDA differently than we
do.
The following table reconciles net income to EBITDA and Adjusted
EBITDA for the three and nine-month periods ended September 30,
2018 and 2017.
|
|
|
|
|
|
|
|
|
Three Months Ended September 30 |
|
Nine Months Ended September 30 |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands) |
|
(in thousands) |
Net income |
|
$ |
10,107 |
|
|
$ |
27,559 |
|
$ |
87,022 |
|
|
$ |
79,022 |
|
Adjusted for: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
(including amortization |
|
|
|
|
|
|
|
|
|
|
|
|
of deferred
financing costs) |
|
|
18,486 |
|
|
|
11,437 |
|
|
48,374 |
|
|
|
40,294 |
|
Income tax
provision |
|
|
1,184 |
|
|
|
6,224 |
|
|
3,347 |
|
|
|
49,993 |
|
Adjustment to
investment in unconsolidated company: |
|
|
|
|
|
|
|
|
|
|
|
|
our proportionate share
in interest, tax and depreciation and amortization |
|
|
3,784 |
|
|
|
— |
|
|
11,768 |
|
|
|
— |
|
Depreciation and
amortization |
|
|
33,687 |
|
|
|
25,751 |
|
|
94,983 |
|
|
|
77,041 |
|
EBITDA |
|
$ |
67,248 |
|
|
$ |
70,971 |
|
$ |
245,494 |
|
|
$ |
246,350 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mark-to-market gains or
losses from accounting for derivatives |
|
|
(297 |
) |
|
|
1,663 |
|
|
1,202 |
|
|
|
(800 |
) |
Stock-based
compensation |
|
|
3,559 |
|
|
|
1,861 |
|
|
7,382 |
|
|
|
7,204 |
|
Gain on sale of
subsidiary and property, plant and equipment |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
Insurance proceeds in
excess of assets carrying value |
|
|
— |
|
|
|
— |
|
|
(7,150 |
) |
|
|
— |
|
Loss from
extinguishment of liability |
|
|
— |
|
|
|
1,950 |
|
|
— |
|
|
|
1,950 |
|
Termination fee |
|
|
4,973 |
|
|
|
— |
|
|
4,973 |
|
|
|
— |
|
Impairment of
long-lived assets |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
Merger and acquisition
transaction cost |
|
|
120 |
|
|
|
— |
|
|
2,790 |
|
|
|
1,700 |
|
Write-off of
unsuccessful exploration activities |
|
|
— |
|
|
|
— |
|
|
119 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
75,603 |
|
|
$ |
76,445 |
|
$ |
254,810 |
|
|
$ |
256,404 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ORMAT TECHNOLOGIES, INC. AND SUBSIDIARIESReconciliation of
Adjusted Net Income attributable to the Company's stockholdersFor
the Three-Month Periods Ended September 30, 2018 and
2017(Unaudited)
Adjusted net income attributable to the Company's stockholders
and Adjusted EPS are adjusted for one-time expense items that are
not representative of our ongoing business and operations. The use
of Adjusted Net income attributable to the Company's stockholders
and Adjusted EPS is intended to enhance the usefulness of our
financial information by providing measures to assess the overall
performance of our ongoing business.
The following table reconciles Net income attributable to the
Company's stockholders and Adjusted EPS for the three -month
periods ended September 30, 2018 and 2017.
|
|
Three Months Ended September
30 |
|
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
(in millions) |
Net income attributable
to the Company's stockholders |
|
$ |
10.6 |
|
$ |
24.0 |
|
|
|
|
|
|
|
One-time termination
fee |
|
|
5.0 |
|
|
— |
|
|
|
|
|
|
|
One-time prepayment
fees |
|
|
— |
|
|
1.9 |
|
|
|
|
|
|
|
One-time tax
Expense |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
Adjusted Net income
attributable to the Company's stockholders |
|
$ |
15.6 |
|
$ |
25.9 |
|
|
|
|
|
|
|
Weighted average number
of shares diluted used in computation of earnings per share
attributable to the Company's stockholders: |
|
|
51.0 |
|
|
50.9 |
|
|
|
|
|
|
Adjusted EPS |
|
|
0.31 |
|
|
0.51 |
|
|
|
|
|
|
|
|
|
Ormat Technologies Contact: Smadar Lavi VP Corporate
Finance and Head of Investor Relations 775-356-9029 (ext. 65726)
slavi@ormat.com |
Investor Relations Agency Contact: Rob Fink Hayden
- IR 646-415-8972 rob@haydenir.com |
|
|
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